Transcript Customer Direct

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Digital One Year On
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The Digital Magazine Whirlpool
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The Digital Magazine Marketplace
Small market
• <2% of total market volumes
• Average 3-4,000 copies per issue
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Growth market (+47% YoY), but...
• Underlying growth = +15% and slowing
• 30% of constant ABC titles have dropped
The Digital Reader
Repertoire
2.4 titles (43% have only 1)
Issues read
2.9 issues per month
Time spent
9.1 hours per month
Money spent
£3.59 per month (38% spend nothing)
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Source: Dovetail Subscriber Satisfaction Survey 2014
Multi-format
Total Consumer Magazine Brands
Print Only
(44%)
PDF replica (46%)
Print + Digital
(56%)
Enhanced replica (39%)
Fully interactive rebuild (8%)
Non-issue, interactive app (7%)
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Source: PPA Publishing Futures 2014
Multi-device
Desktop computer
Laptop / netbook
Tablet
eReader
Smartphone
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
15-24
25-34
35-44
45-54
Age Band
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Source: Dovetail Subscriber Satisfaction Survey 2014
55-64
65+
Multi-channel discovery
Where have you typically found your digital magazines?
30%
Apple Newsstand (etailer)
23%
Magazine’s own website (publisher direct)
23%
Search engine
20%
Another print magazine or newspaper
18%
Apple iTunes (etailer)
17%
Another appstore (etailer)
15%
Another enewsstand (etailer)
14%
Personal recommendation
12%
Blogs & social networks
9%
In-app link
5%
Other
4%
TOTAL
189%
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Parent print magazine (publisher direct)
Source:
Dovetail
Subscriber
Satisfaction
Survey 2014
Multi-channel purchase
Source
% of Total
Digital
Magazine
Business
Apple
77%
Zinio
7%
Google
4%
Other etailer
4%
Publisher direct
8%
TOTAL
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Source: Profile of key publishers
100%
Digital One Year On
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Data, Analysis, Results
Data covers 2/3rds of the market
Publishers
Platforms
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Analysis
The market has now stalled …
Digital Magazine Trends
Last Year
Index RSV and Sales (Apple, Zinio and Google Totals)
180
160
140
120
100
80
60
40
20
0
Apr-2013
Jul-2013
Oct-2013
Jan-2014
Apr-2014
Jul-2014
This Year
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NB Excludes publisher direct sales
Discoverability an issue: Marketing
Google doing better … driven by single copy giveaway
Sales Index by e-tailer
Single Copies and Subs
200
180
160
140
120
100
80
60
40
20
0
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Apple
Google
Zinio
Discoverability an issue: Cross shopping
Apple
£15
per
customer
Zinio
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£24
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Discoverability an issue: New initiatives
Apple downloads slowing
However, still over 800,000 unique app downloads on
average per month
App Downloads Index
140
120
100
80
60
40
20
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Most of the decline is in countries other than
UK and Ireland
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Subscriptions revenue improving, while single
copies decline…
Conversion improving over time …
64% tend to convert to single copies first
Over 10% buying single copies go on to buy a sub through apple
Conversion to purchase within a month is 4.2%; over a longer period this improves to 4.9%
Spike in conversion in August due to single copy promotion through Apple
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1/4 of titles are on a par with the print price
through Apple
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…but almost 40% are a lot cheaper!
Price discount (vs. print) - little impact on
conversion
Does Digital Price Difference to Print Impact Conversion?
12%
10%
8%
6%
4%
2%
0%
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5 to 20
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0 to +5
0 to -5
-5 to -10
-10 to -15
-15 to -20
-20 to -30
< -30
% Difference to Print
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Conversion % (excl Free Trial)
14%
Churn
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Only 1 in 3 subscribers are still
subscribing 12 months later
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Day of the week
Insight available to contributing publishers
Apple
App download over time
App Conversion over time
Conversion by Title
Single Copies over Time (Sales and
RSV)
Subscription over time (sales and RSV)
Churn by title and subscription length
Current issue distribution of titles by
Price point
Apple conversion by Price point
Single Copy to Sub Conversion
Single Copy Frequency of Purchase
Cross Shop Analysis
Back issues
x
x
x
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Insight Compared to the Market
Google
Zinio
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
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x
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x
Digital One Year On
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In Summary…
The digital gap
64%
24%
The percentage
of magazine subscribers
who own a tablet.
The percentage
of magazine subscribers
who read a digital magazine.
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Source: Dovetail Subscriber Satisfaction Survey 2014
Building backwards from the consumer
Specific Uses
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Sampling & promotions
Archiving back issues
Travelling
Gifting
First issue delivery
Time-sensitive delivery
Challenging delivery
Content insights
Building backwards from the consumer
The Mag Moment
Sampling & promotions
Archiving back issues
Travelling
Gifting
First issue delivery
Time-sensitive delivery
Challenging delivery
Content insights
Location
Time available
Device used
What they want to do
Issues to tasks & chunks
Brands to subjects
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Specific Uses
Some big issues
Digital magazines
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Their format & functionality
Their role in multi-channel publishing
Getting the right audience measurement metrics
Enewsstands
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Their role in multi-platform channel management
Understanding the hybrid dynamics
Some operational issues
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Digital price versus print price
Single copy versus subscription
Standalone versus bundle
Downloads versus streaming
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The Gartner Hype Cycle
EXPECTATIONS
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TIME